The Massachusetts House of Representatives has introduced a new mandate within their FY26 state budget that affects businesses with 25 or more employees. The Secure Choice Savings Program requires these businesses to deduct money from employee paychecks and remit it to a state-managed retirement program. Employees are automatically enrolled but have the option to opt out.
Non-compliant businesses will face fines of up to $250 per employee in the first year, increasing to $500 in subsequent years. This proposal was included in a consolidated amendment without any public hearing on its potential impact on businesses and workers. For the proposal to advance, it must be part of the Senate budget or agreed upon in a conference committee report during the budget process.
In another development, New York State has decided to allocate over $6 billion to pay off unemployment insurance (UI) debt, contrasting with Massachusetts’ decision not to use its $9 billion rainy day fund for nearly $5 billion in pandemic-related UI liabilities. Governor Hochul and legislative leaders explained that this move would relieve employers and boost the state’s economy.
Massachusetts residents are encouraged to contact lawmakers about both issues and attend the 2025 Small Business Summit at the Massachusetts State House on June 18th.
